Lululemon Athletica: Telsey Advisory Group Raises PT to $360, Maintains Outperform Rating

Lululemon Athletica: Telsey Advisory Group Raises PT to $360, Maintains Outperform Rating

Telsey Advisory Group has increased its price target for Lululemon Athletica (NASDAQ: LULU) to $360, while maintaining an "outperform" rating on the stock. This upward revision comes amid positive developments in the apparel retailer's financial performance and strategic initiatives.

Lululemon Athletica, known for its high-quality athletic wear, has seen a steady growth in its market presence and revenue. The company's latest earnings report indicated a robust performance, with earnings per share (EPS) of $2.60, exceeding the consensus estimate of $2.60. Revenue for the quarter reached $2.37 billion, up 7.3% year-over-year. The company's strong financial metrics, including a return on equity of 43.48% and a net margin of 16.82%, have bolstered investor confidence.

Institutional investors have also shown interest in Lululemon Athletica. Fora Capital LLC invested approximately $6.19 million in the company by acquiring 21,876 shares in the first quarter of 2025 [1]. Additionally, several other institutional investors and hedge funds have adjusted their holdings in the stock, reflecting the company's growing appeal among investors.

Despite the positive sentiment, Lululemon Athletica's stock has experienced a 2.5% decline, with its market cap currently at $24.26 billion. The stock's price-to-earnings ratio stands at 13.72, indicating a relatively affordable valuation compared to its peers. Analysts forecast that Lululemon Athletica will post 14.36 EPS for the current year, aligning with the company's FY 2025 guidance of 14.580-14.780 EPS.

The company's CEO, Calvin McDonald, sold 27,049 shares in the stock, reducing his stake by 19.66% to 110,564 shares. This transaction, valued at over $6.37 million, suggests a strategic move by McDonald to diversify his holdings or capitalize on the stock's recent performance [2].

Telsey Advisory Group's upward revision of the price target to $360 reflects the firm's optimism about Lululemon Athletica's future prospects. The advisory group's "outperform" rating underscores the potential for strong stock performance, driven by the company's solid financials and strategic initiatives.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-fora-capital-llc-takes-619-million-position-in-lululemon-athletica-inc-lulu-2025-08-26/
[2] https://www.marketbeat.com/instant-alerts/filing-apg-asset-management-nv-has-1871-million-stock-position-in-lululemon-athletica-inc-lulu-2025-08-25/